Why Sell Your House Through One Percent Realty?
$6,900 versus $25,000 - the savings are HUGE!
If you want full MLS® service from a professional REALTOR® at a low commission – that's One Percent Realty. We provide you full REALTOR® service at a discount commission rate of only $7950 for all homes under $700,000.
As a fully licensed REALTOR®, I am a members of the local MLS® real estate board. This enables me to properly market your home on both REALTOR.CA and the local MLS® system for maximum exposure. I provide the same real estate services that a full commission agest would - the only difference is that you pay less, way less. It's the best deal in town, so why pay more?
There has been a lot of recent talk about the Competition Bureau & the recent changes to the MLS® rules. Lets shed a little light on this, at least from our perspective. The new rules allow for a licensed REALTOR® to do what is referred to as "mere-posting" a listing to MLS®. They will charge some sort of nominal fee for this, probably around $500. The idea here is to allow people to market their properties themselves, (For Sale By Owner) and do all of the work themselves.
From where we sit, this is probably a good thing. It gives consumers choices, which they previously did not really have. Now as we see it, consumers have 3 viable scenarios:
Scenario #1 - Sell it through the traditional "higher commission companies" who will place your property on MLS® and provide full service real estate. Depending upon what your home is worth, this will cost a fair amount, though it can vary across the country. A $500,000 home can typically cost $25,000 (assuming 5% commission) in Ontario with such a brokerage, although commissions can vary.
Scenario #2 - Sell it with us. We charge you $7950 for this same $500,000 home, with all the services and exposure that you would receive from the traditional higher commission companies. This fee also includes any payment to the buyers agent (usually $3000). We do open houses, handle the showings, negotiations, and paperwork as you would expect from any full service real estate company. In short, the services and exposure are the same as you would get from option #1 above, but it costs you less.
Scenario #3 - Sell it yourself. You can now put your home on MLS® and have your home exposed with all other listings, and deal directly with the public or REALTORS® who wish to show your property. Worth noting, is that since your property is on MLS®, you will likely deal with a buyer's agent. These buyers agents expect to be paid. Most likely, they will be looking at the Seller to pay them, probably at least half of the fees discussed above. If we use the $500,000 home as our example, a buyer's agent in Ontario often will expect to receive approximately 2.5%, or $12,500 to sell your property plus an additional $500 or so for the FSBO company's upfront listing fee... suddenly saving money by selling it yourself doesn't seem like a good idea. It ends up costing you much more, not to mention the time you put in to the process.
If you can have the full services of a professional REALTOR® for only $6900, why would you not just leave it to a professional?
Make no mistake. Our business model would not have worked in the pre-internet era.
Prior to the Internet, Buyers used to get in the back seat of a REALTORS® car and go on a tour of homes. The REALTOR® would have his/her MLS® catalogue of homes which he was not allowed to give Buyer's a copy of. REALTORS® controlled MLS® information. This is simply not the way it happens anymore.
Nowadays with the Internet, consumers are empowered and in much more control of their new home search. Over 85% of Canadians searching for a home start on the Internet. Whether Buyers are looking for properties themselves on realtor.ca, or are being automatically emailed MLS® properties by a REALTOR®, today's buyer often knows as much, or more about their particular market and the homes for sale in it as their REALTOR® does.
It is no slight on other agents, but the buyer basically has access to MLS® and can check Realtor.ca 20 times a day. Their agent will not be doing that, no matter who they are. These changes in technology and Buyer behaviour created the opportunity for the concept of One Percent Realty to flourish.
A well kept home, priced accurately will sell in any market.
This statement has no relationship with the amount of commission you pay. With extensive experience in project marketing, we realized that there may be an opportunity to market houses in a similar lower commission higher volume manner. Spending most of their time prospecting for business, the conventional agent requires a higher commission structure to compensate for the lower volume/lower listing success rate in the highly competitive real estate industry. With the help of the technological advances such as the Internet, cell phones and fax machines, One Percent Realty was able to reduce the typical real estate office overhead as well as leverage the productivity advances of its agents to create a successful discount commission business model. Whereby our agents earn less per house sold they make it up in volume of sales at the end of year. It works great for us, and it works great for our Sellers. We say at One Percent Realty, the more deals we do the more money we are saving our clients!
The Definition of Market Value
"The highest price estimate, in terms of money which a property will bring if exposed for sale in the open market allowing reasonable time to find a buyer who purchases it with knowledge of the uses to which it is adapted and for which it is capable of being used." (As defined by the Courts)
Does it say anything about commission?
The concept behind One Percent Realty is that we provide you full service but a discount commission. For that full service on MLS® we charge just $7950 for all homes under $700,000 and for homes over $700,000 we charge 1% and $950. The '$950' of the $7950 commission covers the typical disbursement costs to marketing and selling your home. Our agents provide all of the same services as if they would if they were to charge you a higher commission, the only difference being the amount of commission they charge you. Your 1% agent will help you determine the appropriate listing price, list your home on the MLS® service and thus your listing will be on the popular realtor.ca where all the buyers look, enter the listing on the onepercentrealty.com website, take interior and exterior digital photos, place a house for sale sign (if applicable), advertise your property where the Buyers are looking, show your home to prospective Buyers, provide you advice and assistance along the way. Our goal, like yours, is to sell your home.
Full MLS® Exposure
World Wide Internet Exposure on realtor.ca & onepercentrealty.com
Experienced Professional Real Estate Agent
Responding to Consumer & REALTOR® Inquires
Showing the Property to Prospective Buyers
Assisting the Seller in Negotiating Favorable Terms & Conditions of an Offer
Cooperating & Assisting Other Brokerages Working with Buyers
Assisting in the Completion & Possession process
Open Houses (if applicable)
Signage (if applicable)
Full Service Brokerage at a Fraction of the Cost
Will Other Agents Show My Home?
The simple answer is yes. Our MLS® listings are shown, and sold, by lots of Cooperating REALTORS® all of the time. Logic would dictate that if our system was unable to attract Cooperating REALTORS® to sell our MLS® listings then we would be selling most of our own listings to our own Buyers. In fact, its quite the opposite. In Ontario offices in 2011/12, over 89% of our listing sales were sold by Cooperating REALTORS® representing the Buyer.
Why is that? We believe it is two reasons. Firstly, our listings (under $700,000) typically offer $3500 commission to Cooperating Brokers. While $3500 might not be as much as some of other listings, it still is a decent amount of money for a paycheque for Canadians these days including a lot of REALTORS®. The more important reason why other agents cooperate and sell our listings is that it is the Buyers who are dictating the shots these days. As mentioned above, if the Buyer loves the home, does the amount of commission matter to the Buyer?
Some Buyer's agents, with their client's consent, may request more than the commission offered on MLS®. The Seller and their One Percent agent will discuss all their options and the Seller will decide what is in their best interests. Many of our Sellers choose to decline any additional commission for the Buyers agent and the transaction proceeds with our posted commission.
You Owe it to Yourself & Your Hard Earned Equity
Spending $10,000-$50,000 or more to sell your home is a lot of money. If you are thinking about selling your home, call your regular agent that you used last time, but also call us to compare our services and commission rates before you commit. Being full service agents, our agents provide free no obligation market evaluations just like the other guys. Don't let someone else tell you about our system, let us tell you exactly what we can do to sell your home. You and your hard earned equity will be glad you did.